Tokyo Steel Manufacturing tries to ramp up the new Tahara plant with 2.5 million tonnes of capacity to annual 1.5 million tonnes level in fiscal 2011 ending March 2012 after the commissioning in October 2009. The firm tries to ship the sheet steel from the state of the art electric furnace plant with world largest 420 tonnes of furnace to automotive industry. The firm already talks with automakers for sales for inner structural parts including pillar, which the firm already ships from Okayama plant. The firm targets around 60% operation for the new plant initially by operating in only night time with cheaper electricity. The firm tries to secure 1.6-1.7 million tonnes of ferrous scrap around Nagoya. The firm tests and improves the automotive flat steel operations at Okayama and shifts the knowhow to Tahara plant. The firm expends 140 billion yen without land cost for the plant. The construction already finished for office building last summer and wharf recently and builds wharf crane in July-August. The firm expects the setting of the rolling facilities starts in the year after finish of plant building construction, which is slightly behind the schedule due to impact of new building standard law.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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